1. A simplified sales and use tax system
will reduce, and over time eliminate, the burden and cost for all vendors to
collect this state’s sales and use tax.

2. This state should enter into an
agreement with one or more states to simplify and modernize sales and use tax
administration to reduce substantially the burden of tax compliance for all
sellers and for all types of commerce.

3. This state should participate in
multistate discussions to review and, if necessary, amend the terms of the
agreement to simplify and modernize sales and use tax administration to reduce
substantially the burden of tax compliance for all sellers and for all types of
commerce.

NRS 360B.030Definitions.As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 360B.040 to 360B.100, inclusive, have the meanings ascribed to
them in those sections.

NRS 360B.050“Certified automated system” defined.“Certified
automated system” means software certified pursuant to the Agreement to
calculate the tax imposed by each jurisdiction on a transaction, determine the
amount of tax to remit to the appropriate state and maintain a record of the
transaction.

NRS 360B.060“Certified service provider” defined.“Certified
service provider” means an agent certified pursuant to the Agreement to perform
all of a seller’s sales and use tax functions, other than the seller’s
obligation to remit the taxes on its own purchases.

NRS 360B.070“Sales tax” defined.“Sales
tax” means the tax levied by section 19 of chapter 397, Statutes of Nevada
1955, at page 766, and any similar tax authorized by or pursuant to a specific
statute or special legislative act of this state or the laws of another state
that is a member of the Agreement.

NRS 360B.095“Tangible personal property” defined.“Tangible
personal property” means personal property which may be seen, weighed,
measured, felt or touched, or which is in any other manner perceptible to the
senses.

NRS 360B.100“Use tax” defined.“Use
tax” means the tax levied by section 34 of chapter 397, Statutes of Nevada
1955, at page 769, as amended by section 3 of chapter 513, Statutes of Nevada
1985, at page 1562, and any similar tax authorized by or pursuant to a specific
statute or special legislative act of this state or the laws of another state
that is a member of the Agreement.

1. The Nevada Tax Commission shall not
enter into the Agreement unless the Agreement:

(a) Sets restrictions to limit over time the
number of state rates.

(b) Establishes uniform standards for:

(1) The sourcing of transactions to taxing
jurisdictions;

(2) The administration of exempt sales;
and

(3) Sales and use tax returns and
remittances.

(c) Provides a central, electronic registration
system that allows a seller to register to collect and remit sales and use
taxes for all signatory states.

(d) Provides that registration with the central,
electronic registration system and the collection of sales and use taxes in the
signatory states will not be used as a factor in determining whether the seller
has nexus with a state for any tax.

(e) Provides for reduction of the burdens of
complying with local sales and use taxes through the following:

(1) Restricting variances between the
state and local tax bases;

(2) Requiring states to administer any
sales and use taxes levied by local jurisdictions within the state so that
sellers collecting and remitting the taxes will not have to register or file
returns with, remit funds to or be subject to independent audits from local
taxing jurisdictions;

(3) Restricting the frequency of changes
in the local sales and use tax rates and setting effective dates for the
application of local jurisdictional boundary changes to local sales and use
taxes; and

(4) Providing notice of changes in local
sales and use tax rates and of changes in the boundaries of local taxing
jurisdictions.

(f) Outlines any monetary allowances that are to
be provided by the states to sellers or certified service providers and allows
for a joint public and private sector study of the compliance cost on sellers
and certified service providers to collect sales and use taxes for state and
local governments under various levels of complexity to be completed by July 1,
2002.

(g) Requires each state to certify compliance
with the terms of the Agreement before joining and to maintain compliance,
under the laws of the member state, with all provisions of the Agreement while
a member.

(h) Requires each state to adopt a uniform policy
for certified service providers that protects the privacy of consumers and
maintains the confidentiality of tax information.

(i) Provides for the appointment of an advisory
council of private sector representatives and an advisory council of nonmember
state representatives to consult within the administration of the Agreement.

2. The Agreement must require each member
state to abide by the requirements set forth in subsection 1.

NRS 360B.150Beneficiaries of Agreement; causes of action or defenses
relating to Agreement; effect of Agreement on state law.

1. The Agreement authorized by this
chapter binds and inures only to the benefit of this State and the other member
states. No person, other than a member state, is an intended beneficiary of the
Agreement. Any benefit to a person other than a state is established by the law
of this State and the other member states and not by the terms of the
Agreement.

2. No person has any cause of action or
defense under the Agreement or by virtue of this State’s approval of the
Agreement. No person may challenge, in any action brought under any provision
of law, any action or inaction by any department, agency or other instrumentality
of this State, or any political subdivision of this State, on the ground that
the action or inaction is inconsistent with the Agreement.

3. No law of this State, or the
application thereof, may be declared invalid as to any person or circumstance
on the ground that the provision or application is inconsistent with the
Agreement.

NRS 360B.160Nature and purpose of Agreement.The
Agreement authorized by this chapter is an accord among individual cooperating
sovereigns in furtherance of their governmental functions. The Agreement
provides a mechanism among the member states to establish and maintain a
cooperative, simplified system for the application and administration of sales
and use taxes under the laws of each member state.

NRS 360B.170Effect of Agreement and adoption thereof on state law;
implementation of conditions of Agreement.No
provision of the Agreement authorized by this chapter invalidates, in whole or
part, or amends any provision of the laws of this state. Adoption of the
Agreement by this state does not amend or modify any law of this state.
Implementation of any condition of the Agreement in this state, whether adopted
before, at or after membership of this state in the Agreement, must be by the
action of this state.

NRS 360B.200Establishment and maintenance of registration system for
sellers; rights and duties of registering seller.

1. The Department shall, in cooperation
with any other states that are members of the Agreement, establish and maintain
a central, electronic registration system that allows a seller to register to
collect and remit the sales and use taxes imposed in this State and in the
other states that are members of the Agreement.

2. A seller who registers pursuant to this
section agrees to collect and remit sales and use taxes in accordance with the
provisions of this chapter, the regulations of the Department and the
applicable law of each state that is a member of the Agreement, including any
state that becomes a member of the Agreement after the registration of the
seller pursuant to this section. The cancellation or revocation of the
registration of a seller pursuant to this section, the withdrawal of a state
from the Agreement or the revocation of the Agreement does not relieve a seller
from liability pursuant to this subsection to remit any taxes previously or
subsequently collected on behalf of a state.

3. When registering pursuant to this
section, a seller may:

(a) Elect to use a certified service provider as
its agent to perform all the functions of the seller relating to sales and use
taxes, other than the obligation of the seller to remit the taxes on its own
purchases;

(b) Elect to use a certified automated system to
calculate the amount of sales or use taxes due on its sales transactions;

(c) Under such conditions as the Department deems
appropriate in accordance with the Agreement, elect to use its own proprietary
automated system to calculate the amount of sales or use taxes due on its sales
transactions; or

(d) Elect to use any other method authorized by
the Department for performing the functions of the seller relating to sales and
use taxes.

4. A seller who registers pursuant to this
section and does not make the election allowed pursuant to paragraph (a) of
subsection 3 may elect to be registered in any state that:

(a) Is a member of the Agreement at the time of
that registration, as a seller who anticipates making no sales into that state
if the seller has not had any sales into that state for the preceding 12
months; and

(b) Becomes a member of the Agreement after that
registration, as a seller who anticipates making no sales into that state.

5. A seller who registers pursuant to this
section agrees to submit its sales and use tax returns, and to remit any sales
and use taxes due, to the Department at such times and in such a manner and
format as the Department prescribes by regulation. Those regulations must:

(a) Require from each seller who registers
pursuant to this section:

(1) Only a single tax return for each taxing
period for all the sales and use taxes collected on behalf of this State and
each local government in this State; and

(2) Only one remittance of taxes for each
tax return, except that the Department may require additional remittances of
taxes if the seller:

(I) Collects more than $30,000 in
sales and use taxes on behalf of this State and the local governments in this
State during the preceding calendar year;

(II) Is allowed to determine the
amount of any additional remittance by a method of calculation instead of by
the actual amount collected; and

(III) Is not required to file any
tax returns in addition to those otherwise required in accordance with this
subsection.

(b) Allow any seller who registers pursuant to
this section to submit tax returns electronically in a simplified format.

(c) Allow any seller who registers pursuant to
this section, does not maintain a place of business in this State and has not
made an election pursuant to paragraph (a), (b) or (c) of subsection 3, to file
tax returns at a frequency that does not exceed once per year unless the seller
accumulates more than $1,000 in the collection of sales and use taxes on behalf
of this State and the local governments in this State.

(d) Provide an alternative method for a seller
who registers pursuant to this section to make tax payments the same day as the
seller intends if an electronic transfer of money fails.

(e) Require any data that accompanies the
remittance of a tax payment by or on behalf of a seller who registers pursuant
to this section to be formatted using uniform codes for the type of tax and
payment in accordance with the Agreement.

6. The registration of a seller and the
collection and remission of sales and use taxes pursuant to this section may
not be considered as a factor in determining whether a seller has a nexus with
this State for the purposes of determining the liability of the seller to pay
any tax imposed by this State.

NRS 360B.210Liability of certified service provider as agent of seller;
liability and auditing of seller who contracts with certified service provider;
system checks of sellers.

1. A certified service provider is:

(a) The agent of each seller with whom the
certified service provider has contracted for the collection and remittance of
sales and use taxes; and

(b) Liable for sales and use taxes due each
member state on all sales transactions it processes for a seller unless the
seller misrepresents the type of items it sells or commits fraud.

2. A seller that contracts with a
certified service provider is:

(a) Liable to this state for sales or use taxes
due on transactions processed by the certified service provider if the seller
misrepresents the type of items it sells or commits fraud;

(b) Subject to audit on the transactions
processed by the certified service provider if there is probable cause to
believe that the seller has committed fraud or made a material
misrepresentation; and

(c) Subject to audit for transactions not
processed by the certified service provider.

3. The member states acting jointly may
perform a system check of the seller and review the seller’s procedures to
determine if the certified service provider’s system is functioning properly
and the extent to which the seller’s transactions are being processed by the
certified service provider.

NRS 360B.220Responsibility and liability of person that provides and seller
that uses certified automated system; liability of seller for proprietary
system.

1. A person that provides a certified
automated system is:

(a) Responsible for the proper functioning of
that system; and

(b) Liable to this state for underpayments of tax
attributable to errors in the functioning of the certified automated system.

2. A seller that uses a certified
automated system remains responsible and is liable to this state for reporting
and remitting tax.

3. A seller that has a proprietary system
for determining the amount of tax due on transactions and has signed an
agreement establishing a performance standard for that system is liable for the
failure of the system to meet the performance standard.

1. Review the software submitted for the
certification of a certified automated system pursuant to the Agreement and, if
the Department determines that the software accurately reflects the taxability
of the product categories included in the program, certify its acceptance of
the determination of the taxability of the product categories included in the
program.

2. Except as otherwise provided in
subsection 3:

(a) If a certified service provider acting on
behalf of a registered seller fails to collect the correct amount of any sales
or use tax imposed in this State as a result of his or her reliance on the
certification of the Department pursuant to subsection 1 regarding the
certified automated system used by that certified service provider, waive any
liability of the certified service provider, and of the registered seller on
whose behalf the certified service provider is acting, for:

(1) The amount of the sales or use tax
which the certified service provider fails to collect as a result of that
reliance; and

(2) Any penalties and interest on that
amount.

(b) If a registered seller who elects to use a
certified automated system pursuant to subsection 3 of NRS
360B.200 fails to collect the correct amount of any sales or use tax
imposed in this State as a result of his or her reliance on the certification
of the Department pursuant to subsection 1 regarding the certified automated
system used by that registered seller, waive any liability of the registered
seller for:

(1) The amount of the sales or use tax
which the registered seller fails to collect as a result of that reliance; and

(2) Any penalties and interest on that
amount.

3. Notify a certified service provider or
a registered seller who elects to use a certified automated system pursuant to
subsection 3 of NRS 360B.200 if the Department
determines that the taxability of any item or transaction is being incorrectly
classified by the certified automated system used by the certified service
provider or registered seller. The provisions of subsection 2 do not require
the waiver of any liability for the incorrect classification of an item or
transaction regarding which notice was provided to the certified service
provider or registered seller pursuant to this subsection if the incorrect
classification occurs more than 10 days after the receipt of that notice.

(f) A matrix for determining the taxability of
products in this State and any change in the taxability of a product listed in
that matrix.

(g) Any other information the Department deems
appropriate.

2. The Department shall make a reasonable
effort to provide sellers with as much advance notice as possible of any
changes or amendments required to be posted pursuant to subsection 1 and of any
other changes in the information posted pursuant to subsection 1. Except as
otherwise provided in NRS 360B.250, the failure of
the Department to provide such notice and the failure of a seller to receive
such notice does not affect the obligation of the seller to collect and remit
any applicable sales and use taxes.

NRS 360B.240Maintenance by Department and use of list denoting tax rates and
taxing jurisdictions for each zip code in State.

1. The Department shall maintain a list
that denotes for each five-digit and nine-digit zip code in this State the
combined rates of sales taxes and the combined rates of use taxes imposed in
the area of that zip code, and the applicable taxing jurisdictions, including,
without limitation, any pertinent Indian reservation or Indian colony. If the
combined rate of all the sales taxes or use taxes respectively imposed within
the area of a zip code is not the same for the entire area of the zip code, the
Department shall denote in the list the lowest combined tax rates for the
entire zip code.

2. If a street address does not have a
nine-digit zip code or if a registered seller or certified service provider is
unable to determine the nine-digit zip code applicable to a purchase after
exercising due diligence to determine that information, that seller or
certified service provider may, except as otherwise provided in subsection 3,
apply the rate denoted for the five-digit zip code in the list maintained
pursuant to this section. For the purposes of this subsection, there is a
rebuttable presumption that a registered seller or certified service provider
has exercised due diligence if the seller or certified service provider has
attempted to determine the nine-digit zip code applicable to a purchase by
using software approved by the Department which makes that determination from
the street address and five-digit zip code applicable to the purchase.

3. The list maintained pursuant to this
section does not apply to and must not be used for any transaction regarding
which a purchased product is received by the purchaser at the business location
of the seller.

NRS 360B.250Waiver of liability for failure to collect or pay correct amount
of sales or use tax under certain circumstances.The
Department shall:

1. If a registered seller fails to collect
the correct amount of any sales or use tax imposed in this State as a result of
his or her reasonable reliance on the information posted pursuant to NRS 360B.230 or his or her compliance with subsection
2 of NRS 360B.240, waive any liability of the
registered seller for:

(a) The amount of the sales or use tax which the
registered seller fails to collect as a result of that reliance; and

(b) Any penalties and interest on that amount.

2. If a certified service provider acting
on behalf of a registered seller fails to collect the correct amount of any
sales or use tax imposed in this State as a result of his or her reasonable
reliance on the information posted pursuant to NRS
360B.230 or his or her compliance with subsection 2 of NRS 360B.240, waive any liability of the certified
service provider, and of the registered seller on whose behalf the certified
service provider is acting, for:

(a) The amount of the sales or use tax which the
certified service provider fails to collect as a result of that reliance; and

(b) Any penalties and interest on that amount.

3. Waive any liability of a purchaser for
any sum for which the liability of a registered seller or certified service
provider is required to be waived pursuant to subsection 1 or 2 with regard to
a transaction involving that purchaser.

4. If a purchaser fails to pay the correct
amount of any sales or use tax imposed in this State as a result of his or her
reasonable reliance on the information posted pursuant to NRS 360B.230, waive any liability of the purchaser
for:

(a) The amount of the sales or use tax which the
purchaser fails to pay as a result of that reliance; and

(b) Any penalties and interest on that amount.

5. If an increase in the rate of any sales
or use tax imposed in this State becomes effective within 30 days after the
enactment of a statute providing for that increase, waive any liability of a
registered seller for:

(a) The amount of the sales or use tax which the
registered seller fails to collect at the increased rate; and

(b) Any penalties and interest on that amount,

Ê unless the
registered seller fails to collect the tax at the rate in effect immediately
preceding that increase, the registered seller’s failure to collect the tax at
the increased rate extends beyond the first 30 days after the enactment of the
statute providing for that increase, the registered seller fraudulently fails
to collect the tax at the increased rate or the registered seller solicits
purchasers based on the rate in effect immediately preceding that increase.

NRS 360B.255Application of tax to shipment of tangible personal property
that includes both taxable and exempt property.If
a shipment of tangible personal property which is sold to a purchaser includes
both taxable and exempt property, the seller of the property:

1. Shall allocate any delivery charges the
seller imposes by using a percentage based on:

(a) The total sales price of the taxable property
compared to the total sales price of all the property in the shipment; or

(b) The total weight of the taxable property
compared to the total weight of all the property in the shipment;

2. Shall apply the applicable tax to the
percentage of the delivery charges allocated to the taxable property; and

3. Shall not apply the tax to the
percentage of the delivery charges allocated to the exempt property.

1. A purchaser may purchase tangible
personal property without paying to the seller at the time of purchase the
sales and use taxes that are due thereon if:

(a) The seller does not maintain a place of
business in this State; and

(b) The purchaser has obtained a direct pay
permit pursuant to the provisions of this section.

2. A purchaser who wishes to obtain a
direct pay permit must file with the Department an application for such a
permit that:

(a) Is on a form prescribed by the Department;
and

(b) Sets forth such information as is required by
the Department.

3. The application must be signed by:

(a) The owner if he or she is a natural person;

(b) A member or partner if the seller is an
association or partnership; or

(c) An executive officer or some other person
specifically authorized to sign the application if the seller is a corporation.
Written evidence of the signer’s authority must be attached to the application.

4. Any purchaser who obtains a direct pay
permit pursuant to this section shall:

(a) Determine the amount of sales and use taxes
that are due and payable to this State, a local government of this State or an
Indian reservation or Indian colony in this State upon the purchase of tangible
personal property from such a seller; and

(a) A purchaser of advertising and promotional
direct mail may provide the seller with:

(1) Documentation of the direct pay permit
of the purchaser issued pursuant to NRS 360B.260;

(2) A certificate or written statement, in
a form approved by the Department in accordance with the provisions of the
Agreement, claiming the direct mail; or

(3) An informational statement of the
jurisdictions to which the advertising and promotional direct mail is to be
delivered to recipients.

(b) If the purchaser provides the documentation,
certificate or statement pursuant to subparagraph (1) or (2) of paragraph (a),
the sale shall be deemed to take place in the jurisdictions to which the
advertising and promotional direct mail is to be delivered to the recipients
and:

(1) If the seller does not maintain a
place of business in this State:

(I) The purchaser shall report and
pay any applicable sales or use taxes due; and

(II) The seller, in the absence of
bad faith, is relieved of all obligations to collect, pay or remit any sales or
use taxes applicable to any transaction involving the advertising and
promotional direct mail to which the documentation, certificate or statement
applies; or

(2) If the seller maintains a place of
business in this State:

(I) The seller shall collect and
remit any applicable sales or use taxes due in this State;

(II) The purchaser shall report and
pay any applicable sales or use taxes due in any other state; and

(III) The seller, in the absence of
bad faith, is relieved of all obligations to collect, pay or remit any sales or
use taxes applicable to any transaction involving the advertising and
promotional direct mail to which the documentation, certificate or statement
applies which are due in any other state.

(c) If the purchaser provides the informational
statement pursuant to subparagraph (3) of paragraph (a):

(1) The sale shall be deemed to take place
in the jurisdictions to which the advertising and promotional direct mail is to
be delivered;

(2) The seller shall collect and remit any
applicable sales or use taxes due to those jurisdictions; and

(3) If the seller complies with
subparagraph (2) in accordance with the delivery information provided by the
purchaser, the seller, in the absence of bad faith, is relieved of any further
obligation to collect any additional sales or use taxes on the sale.

(d) If the purchaser does not provide the seller
with any of the items listed in paragraph (a), the sale shall be deemed to take
place at the location described in subsection 5 of NRS
360B.360. The state to which the advertising and promotional direct mail is
delivered may disallow credit for any sales or use taxes paid in accordance
with this paragraph.

(a) Except as otherwise provided in this subsection,
the sale of other direct mail shall be deemed to take place at the location
described in subsection 3 of NRS 360B.360.

(b) A purchaser of other direct mail may provide
the seller with:

(1) Documentation of the direct pay permit
of the purchaser issued pursuant to NRS 360B.260;
or

(2) A certificate or written statement, in
a form approved by the Department in accordance with the provisions of the
Agreement, claiming the direct mail.

(c) If the purchaser provides the documentation,
certificate or statement pursuant to paragraph (b), the sale shall be deemed to
take place in the jurisdictions to which the other direct mail is to be
delivered to the recipients and:

(1) If the seller does not maintain a
place of business in this State:

(I) The purchaser shall report and
pay any applicable sales or use taxes due; and

(II) The seller, in the absence of
bad faith, is relieved of all obligations to collect, pay or remit any sales or
use taxes applicable to any transaction involving the other direct mail to
which the documentation, certificate or statement applies; or

(2) If the seller maintains a place of
business in this State:

(I) The seller shall collect and
remit any applicable sales or use taxes due in this State;

(II) The purchaser shall report and
pay any applicable sales or use taxes due in any other state; and

(III) The seller, in the absence of bad
faith, is relieved of all obligations to collect, pay or remit any sales or use
taxes applicable to any transaction involving the other direct mail to which
the documentation, certificate or statement applies which are due in any other
state.

3. This section does not apply to any
transaction that includes the development of billing information or the
provision of any data processing service that is more than incidental,
regardless of whether any advertising and promotional direct mail is included
in the same mailing.

4. If a transaction is a bundled
transaction, as defined by a regulation of the Department in accordance with
the provisions of the Agreement, that includes advertising and promotional
direct mail, this section applies only if the primary purpose of the transaction
is the sale of products that meet the definition set forth in paragraph (a) of
subsection 6.

5. The provisions of this section do not
limit any purchaser’s:

(a) Liability for any sales or use taxes to any
states to which the direct mail is delivered;

(b) Rights under local, state, federal or
constitutional law, to a credit for sales or use taxes due and paid to other
jurisdictions; or

(c) Right to a refund of any sales or use taxes
overpaid to any jurisdiction.

6. As used in this section:

(a) “Advertising and promotional direct mail”
means direct mail, the primary purpose of which is to attract public attention
to a product, person, business or organization, or to attempt to sell,
popularize or secure financial support for a product, person, business or
organization. As used in this paragraph, “product” means tangible personal
property, a product transferred electronically or a service.

(b) “Direct mail” means printed material
delivered or distributed by the United States Postal Service or another
delivery service to a mass audience or to addresses contained on a mailing list
provided by a purchaser or at the direction of a purchaser when the cost of the
items purchased is not billed directly to the recipients. The term includes
tangible personal property supplied directly or indirectly by the purchaser to
the seller of the direct mail for inclusion in the package containing the
printed material. The term does not include multiple items of printed material
delivered to a single address.

(c) “Other direct mail” means any direct mail
that is not advertising and promotional direct mail, regardless of whether any
advertising and promotional direct mail is included in the same mailing. The
term:

NRS 360B.290Contents of document given to purchaser indicating sales price
of tangible personal property.Any
invoice, billing or other document given to a purchaser that indicates the
sales price for which tangible personal property is sold:

1. May state separately any amount
received by the seller for any transportation, shipping or postage charges for
the delivery of the property to a location designated by the purchaser; and

2. Must state separately any amount received
by the seller for:

(a) Any installation charges for the property;

(b) Any credit for any trade-in which is
specifically exempted from the sales price of the property pursuant to chapter 372 or 374
of NRS;

(c) Any interest, financing and carrying charges
from credit extended on the sale; and

NRS 360B.300Payment of tax and filing of return due on weekend, legal
holiday or certain days taxpayer is unable to remit tax electronically.Notwithstanding the provisions of any other
specific statute:

1. If any sales or use tax is due and
payable on:

(a) A Saturday, Sunday or legal holiday, the tax
may be paid on the next succeeding business day; or

(b) A day on which a Federal Reserve bank is
closed and, as a result of that closure, the taxpayer is not able to remit the
tax electronically in accordance with the regulations adopted by the Department
pursuant to NRS 360.092, the tax may be
paid on the next succeeding day on which the Federal Reserve bank is open.

2. If any sales or use tax return is:

(a) Due on a Saturday, Sunday or legal holiday,
the return may be filed on the next succeeding business day; or

(b) Required to be filed in conjunction with a
remittance of the tax and paragraph (b) of subsection 1 applies to that
remittance, the return may be filed on the same day as the tax may be paid in
accordance with that paragraph.

NRS 360B.310Effective date of change in tax rate resulting from change in
boundary of local government.Notwithstanding
the provisions of any other specific statute, if the boundary of a local
government that has imposed a sales or use tax is changed, any change in the
rate of that tax which results therefrom becomes effective on the first day of
the first calendar quarter that begins at least 60 days after the effective
date of the change in the boundary.

1. The Department shall provide public
notification to consumers of tangible personal property, including purchasers
who are exempt from any sales and use taxes, of the practices of this State
relating to the collection, use and retention of any personally identifiable
information.

2. The Department shall not retain any
personally identifiable information if the information is no longer required to
ensure the validity of exemptions from sales and use taxes.

3. When any personally identifiable
information that identifies a natural person is retained by or on behalf of the
State, that person is entitled to reasonable access to that information to
correct any portion thereof which has been inaccurately recorded.

4. If any person or other entity, except a
state which is a member of the Agreement or any person or other entity who is
entitled to such information pursuant to any state law or the Agreement,
requests any personally identifiable information maintained by the Department,
the Department shall make a reasonable and timely effort to notify any person
who is identified by the requested information.

5. The Attorney General shall enforce the
provisions of this section.

6. As used in this section, “personally
identifiable information” means information that identifies:

(a) A participant in the system created pursuant
to the Agreement; or

(b) A consumer of tangible personal property who
deals with a registered seller that elects to use a certified service provider
as its agent to perform all the functions of the seller relating to sales and
use taxes, other than the obligation of the seller to remit the taxes on its
own purchases.

NRS 360B.330Action by purchaser against seller for refund of sales or use
tax erroneously or illegally collected by seller.

1. No purchaser may commence or maintain
any cause of action against any seller for the refund of any sales or use tax
erroneously or illegally collected by the seller unless:

(a) The purchaser provides the seller with
written notice of his or her request for a refund, containing such information
as is necessary to determine the validity of the request; and

(b) The seller:

(1) Denies the request; or

(2) Fails to respond to the request within
60 days after receiving the notice of the request provided in accordance with
paragraph (a).

2. For the purposes of any action brought
by a purchaser against a seller for the refund of any sales or use tax
erroneously or illegally collected by the seller, the seller is presumed to
have a reasonable business practice regarding the collection of sales and use
taxes if the seller:

(a) Uses a provider or system, including a
proprietary system, that is certified by this State; and

(b) Has remitted to this State all sales and use
taxes collected on behalf of this State and each local government in this
State, less any deductions, credits and collection allowances to which the
seller is entitled.

1. Except as otherwise provided in this
section and NRS 360B.281, for the purpose of
determining the liability of a seller for sales and use taxes, a retail sale
shall be deemed to take place at the location determined pursuant to NRS 360B.350 to 360B.375,
inclusive.

NRS 360B.360Retail sale of tangible personal property generally.Except as otherwise provided in NRS 360B.350 to 360B.375,
inclusive, the retail sale, excluding the lease or rental, of tangible personal
property shall be deemed to take place:

1. If the property is received by the
purchaser at a place of business of the seller, at that place of business.

2. If the property is not received by the
purchaser at a place of business of the seller:

(a) At the location indicated to the seller
pursuant to any instructions provided for the delivery of the property to the
purchaser or to another recipient who is designated by the purchaser as his or
her donee; or

(b) If no such instructions are provided and if
known by the seller, at the location where the purchaser or another recipient
who is designated by the purchaser as his or her donee, receives the property.

3. If subsections 1 and 2 do not apply, at
the address of the purchaser indicated in the business records of the seller
that are maintained in the ordinary course of the seller’s business, unless the
use of that address would constitute bad faith.

4. If subsections 1, 2 and 3 do not apply,
at the address of the purchaser obtained during the consummation of the sale,
including, if no other address is available, the address of the purchaser’s
instrument of payment, unless the use of an address pursuant to this subsection
would constitute bad faith.

5. In all other circumstances, at the
address from which the property was shipped.

1. Except as otherwise provided in this
section and NRS 360B.355, 360B.370
and 360B.375, the lease or rental of tangible
personal property shall be deemed to take place as follows:

(a) If the lease or rental requires recurring
periodic payments, for the purposes of:

(1) The first periodic payment, the
location of the lease or rental shall be deemed to take place at the location
determined pursuant to NRS 360B.360; and

(2) Subsequent periodic payments, the
location of the lease or rental shall be deemed to take place at the primary
location of the property. For the purposes of this subparagraph, the primary
location of the property shall be deemed to be the address for the property
provided by the lessee and set forth in the records maintained by the lessor in
the ordinary course of business, regardless of the intermittent use of the
property at different locations, unless the use of that address would
constitute bad faith.

(b) If the lease or rental does not require
recurring periodic payments, the location of the lease or rental shall be
deemed to take place at the location determined pursuant to NRS 360B.360.

2. This section does not apply to the
determination of any liability of a seller for any sales or use taxes imposed
on:

(a) The acquisition of tangible personal property
for lease; or

(b) Any accelerated or lump-sum payments made
pursuant to a lease or rental of tangible personal property.

NRS 360B.370Lease or rental of motor vehicles, trailers, semitrailers or
aircraft that do not constitute transportation equipment.

1. Except as otherwise provided in this
section and NRS 360B.355, the lease or rental of
motor vehicles, trailers, semitrailers or aircraft that do not constitute
transportation equipment shall be deemed to take place:

(a) If the lease or rental requires recurring
periodic payments, at the primary location of the property. For the purposes of
this paragraph, the primary location of the property shall be deemed to be the
address for the property provided by the lessee and set forth in the records
maintained by the lessor in the ordinary course of business, regardless of the
intermittent use of the property at different locations, unless the use of that
address would constitute bad faith.

(b) If the lease or rental does not require
recurring periodic payments, at the location determined pursuant to NRS 360B.360.

2. This section does not apply to the
determination of any liability of a seller for any sales or use taxes imposed
on:

(a) The acquisition of tangible personal property
for lease; or

(b) Any accelerated or lump-sum payments made
pursuant to a lease or rental of tangible personal property.

NRS 360B.375Lease or rental of transportation equipment.Except as otherwise provided in NRS 360B.355, the lease or rental of transportation
equipment shall be deemed to take place at the location determined pursuant to NRS 360B.360.

NRS 360B.400Duty of Department.In
administering the provisions of this chapter and chapters
372 and 374 of NRS, and in carrying out
the provisions of the Agreement, the Department shall construe the terms
defined in NRS 360B.405 to 360B.495,
inclusive, unless the context otherwise requires, in the manner prescribed by
those sections.

NRS 360B.415“Computer software” construed.“Computer
software” means a set of coded instructions designed to cause a computer or
automatic data processing equipment to perform a task. The term does not
include any specified digital products.

NRS 360B.425“Delivery charges” construed.“Delivery
charges” means charges by a seller of personal property for the preparation and
delivery of the property to a location designated by the purchaser of the
property, including, but not limited to, charges for transportation, shipping,
postage, handling, crating and packing, except that the term does not include
any charges for transportation, shipping or postage which are stated separately
pursuant to NRS 360B.290.

(e) A dietary substance for use by humans to
supplement the diet by increasing the total dietary intake; or

(f) A concentrate, metabolite, constituent,
extract or combination of any ingredient described in paragraphs (a) to (e),
inclusive;

2. Is intended for ingestion in the form
of a tablet, capsule, powder, softgel, gelcap or liquid or, if not intended for
ingestion in such a form, is not represented as conventional food and is not
represented for use as a sole item of a meal or of the diet; and

3. Is required to be labeled as a dietary
supplement in accordance with 21 C.F.R. § 101.36.

NRS 360B.435“Drug” construed.“Drug”
means a compound, substance or preparation, and any component of a compound,
substance or preparation, other than a food, a food ingredient, a dietary
supplement and an alcoholic beverage, which is:

1. Recognized in the official United
States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United
States, or official National Formulary, or in any supplement
thereto;

2. Intended for use in the diagnosis,
cure, mitigation, treatment or prevention of disease; or

NRS 360B.445“Food” and “food ingredients” construed.“Food” and “food ingredients” mean substances,
whether in liquid, concentrated, solid, frozen, dried or dehydrated form, that
are sold for ingestion or chewing by humans and are consumed for their taste or
nutritional value, except alcoholic beverages, dietary supplements and tobacco.

1. Except as otherwise provided in this
section, “lease or rental” means any transfer of possession or control of
tangible personal property for a fixed or indeterminate term for consideration.
The term:

(a) Includes future options to purchase or
extend;

(b) Excludes:

(1) A transfer of possession or control
under a security agreement or plan for deferred payment that requires the
transfer of title upon completion of the required payments;

(2) A transfer of possession or control
under an agreement that requires the transfer of title upon completion of
required payments and payment of an option price that does not exceed the
greater of $100 or 1 percent of the total required payments; and

(3) The provision of tangible personal
property together with an operator for a fixed or indeterminate period, if the
operator:

(I) Is necessary for the property to
perform as designed; and

(II) Does anything more than
maintain, inspect and set up the property; and

(c) Includes agreements covering motor vehicles
and trailers pursuant to which the amount of consideration may be increased or
decreased by reference to the amount realized upon sale or disposition of the
property, as described in 26 U.S.C. § 7701(h)(1).

2. The provisions of subsection 1:

(a) Apply regardless of whether a transaction is
characterized as a lease or rental under generally accepted accounting
principles, the Internal Revenue Code, the Uniform Commercial Code or any other
provisions of federal, state or local law.

2. Two or more food ingredients mixed or
combined by the seller for sale as a single item, unless the food ingredients:

(a) Are only cut, repackaged or pasteurized by
the seller; or

(b) Contain any raw eggs, fish, meat or poultry,
or other such raw animal foods requiring cooking by the consumer to prevent
food-borne illnesses, as recommended pursuant to the Food Code published by the
Food and Drug Administration of the United States Department of Health and
Human Services; and

3. Food sold with eating utensils provided
by the seller, including plates, knives, forks, spoons, glasses, cups, napkins
or straws. For the purposes of this subsection, “plates” does not include any
containers or packaging used to transport food.

NRS 360B.465“Prescription” construed.“Prescription”
means an order, formula or recipe issued in any form of oral, written,
electronic or other means of transmission by a duly licensed practitioner
authorized by the laws of this State.

NRS 360B.470“Prewritten computer software” construed.“Prewritten computer software” means computer
software, including any prewritten upgrades, which is not designed and
developed by the author or other creator to the specifications of a specific
purchaser, and computer software designed and developed by the author or other
creator to the specifications of a specific purchaser when it is sold to a
person other than the specific purchaser. For the purposes of this section:

1. The combining of two or more prewritten
computer software programs or prewritten portions thereof does not cause the
combination to be other than prewritten computer software.

2. When a person modifies or enhances any
computer software of which the person is not the author or creator, that person
shall be deemed to be the author or creator only of those modifications or
enhancements.

3. Any prewritten computer software or a
prewritten portion thereof that is modified or enhanced to any degree remains
prewritten computer software if that modification or enhancement is designed
and developed to the specifications of a specific purchaser, except that the
modification or enhancement does not constitute prewritten computer software if
there is a reasonable, separately stated charge or an invoice or other
statement of the price given to the purchaser for that modification or
enhancement.

1. “Sales price” means the total amount of
consideration, including cash, credit, property and services, for which
personal property is sold, leased or rented, valued in money, whether received
in money or otherwise, and without any deduction for:

(a) The seller’s cost of the property sold;

(b) The cost of materials used, labor or service
cost, interest, losses, all costs of transportation to the seller, all taxes
imposed on the seller, and any other expense of the seller;

(c) Any charges by the seller for any services
necessary to complete the sale, including any delivery charges which are not
stated separately pursuant to subsection 1 of NRS
360B.290 and excluding any installation charges which are stated separately
pursuant to subsection 2 of NRS 360B.290; and

(d) Except as otherwise provided in subsection 2,
any credit for any trade-in.

2. The term does not include:

(a) Any delivery charges which are stated
separately pursuant to subsection 1 of NRS 360B.290;

(b) Any installation charges which are stated
separately pursuant to subsection 2 of NRS 360B.290;

(c) Any credit for any trade-in which is:

(1) Specifically exempted from the sales
price pursuant to chapter 372 or 374 of NRS; and

(d) Any discounts, including those in the form of
cash, term or coupons that are not reimbursed by a third party, which are
allowed by a seller and taken by the purchaser on a sale;

(e) Any interest, financing and carrying charges
from credit extended on the sale of personal property, if stated separately
pursuant to subsection 2 of NRS 360B.290;

(f) Any taxes legally imposed directly on the
consumer which are stated separately pursuant to subsection 2 of NRS 360B.290; and

(g) The complimentary portion of any food, meals
or nonalcoholic drinks provided on a complimentary basis, in whole or in part,
to the employees, patrons or guests of a retailer.

3. The term includes consideration
received by a seller from a third party if:

(a) The seller actually receives consideration
from a person other than the purchaser and the consideration is directly
related to a price reduction or discount on the sale;

(b) The seller has an obligation to pass the
price reduction or discount through to the purchaser;

(c) The amount of the consideration attributable
to the sale is fixed and determinable by the seller at the time of the sale of
the item to the purchaser; and

(d) Any of the following criteria is satisfied:

(1) The purchaser presents a coupon,
certificate or other documentation to the seller to claim a price reduction or
discount, and the coupon, certificate or other documentation is authorized, distributed
or granted by a third party with the understanding that the third party will
reimburse any seller to whom the coupon, certificate or other documentation is
presented.

(2) The purchaser identifies himself or
herself to the seller as a member of a group or organization entitled to a
price reduction or discount. For the purposes of this subparagraph, a preferred
customer card that is available to any patron does not constitute membership in
such a group.

(3) The price reduction or discount is identified
as a third-party price reduction or discount on the invoice received by the
purchaser or on a coupon, certificate or other documentation presented by the
purchaser.

NRS 360B.485“Tangible personal property” construed.“Tangible
personal property” includes, but is not limited to, electricity, water, gas,
steam and prewritten computer software. The term does not include any products
that are transferred electronically to a purchaser.